The degree of built-in stability in the above economy could be increased by:
A)reducing government purchases so that the purchases line shifts downward but parallel to its present position.
B)changing the tax system so that the tax line is shifted downward but parallel to its present position.
C)changing the tax system so that the tax line has a greater slope.
D)altering the government expenditures line so that it has a positive slope.

Question

The degree of built-in stability in the above economy could be increased by:
A)reducing government purchases so that the purchases line shifts downward but parallel to its present position. 
B)changing the tax system so that the tax line is shifted downward but parallel to its present position. 
C)changing the tax system so that the tax line has a greater slope. 
D)altering the government expenditures line so that it has a positive slope.

Quizplus · Accepted Answer

The Answer of  The degree of built-in stability in the above economy could be increased by:
A)reducing government purchases so that the purchases line shifts downward but parallel to its present position. 
B)changing the tax system so that the tax line is shifted downward but parallel to its present position. 
C)changing the tax system so that the tax line has a greater slope. 
D)altering the government expenditures line so that it has a positive slope.

The Degree of Built-In Stability in the Above Economy Could